Zenith Bank in Nigeria has cut the amount of international online spending it will facilitate from US$100 to US$20 while also suspending its local Naira debit and credit cards from use at international ATMs and Point of Sale platforms.

Nigeria is battling a foreign currency crunch. While Fintech experts say cryptocurrencies can help the situation – worsened by inflation – the central bank says it will rather push the eNaira launched last year.

Amid the challenging economic situation, banks are now limiting international transactions requiring hard currency.

In a notice to depositors, Zenith Bank said this week that it is restricting usage of local currency cards from international transactions.

“Please be informed that we have temporarily suspended the use of Zenith Bank Naira cards for International Automated Teller Machine cash withdrawals and Point of Sale transactions,” the Bank stated.

Zenith Bank has also additionally significantly lowered “the monthly card international spend limit for web transactions” from US$100 to US$20. It said the new measures were “in response to today’s new economic realities”.

Depositors with “higher international spend requirement” will now have to visit the bank’s branches to “request for a foreign currency debit or prepaid card” available in US Dollar, Pound or Euro denominations.

Another Nigerian bank, Bank of Africa also lowered the international spend limit for web transactions from US$100 to US$20 per month.

“The Central Bank of Nigeria stopped FX sales to the country’s Bureau de Change outlets last July, the potential uplift from higher crude export revenue on CBN reserves no longer feeds through to the unofficial rate, which is now solely a reflection of dollar demand and supply,” said Murega Mungai, trading desk Manager at AZA Finance.